Ukraine

Ukraine faces a profound housing crisis, largely intensified by the ongoing war. As of late 2023, more than 2 million homes—equal to about 10% of the entire housing stock—were either destroyed or damaged. This has resulted in an internal displacement crisis, with at least 3.5 million people still displaced inside the country and 4.5 million returning to find their residences uninhabitable or lost. Housing affordability is a major problem: surveys indicate that 42% of Ukrainian households spend more than 30% of their income on housing, making it unaffordable by standard definitions. Almost half report needing to economize on essentials such as food or clothing to meet housing costs, and 42% say they would not be able to secure alternative housing if they lost their current home. Only a small minority could afford to buy or rent another place. The crisis disproportionately affects vulnerable groups: internally displaced persons, women (particularly those heading households), children, the elderly, and people with disabilities. Regional disparities are stark, with the eastern regions suffering the most physical damage while western cities experience rapid price increases due to heightened demand from those fleeing conflict zones. Despite modest increases in housing construction, the state struggles to provide sustainable solutions, leaving millions at risk of homelessness or living in precarious, unsafe conditions.

In early 2025, Ukraine’s government advanced housing reform by adopting the new Law “On the Basic Housing Policy Framework.” This law aims to overhaul the outdated Soviet-era housing system and tackle urgent affordability and sustainability challenges heightened by war and displacement. The law’s key features include establishing affordable housing operators, expanding sustainable rental housing stock, and introducing transparent social rental housing funds. Digital transformation is central, with an integrated housing database for streamlined, more transparent allocation and maintenance. A national State Housing Strategy, now under development, will set clear targets and guidelines for the next 5–7 years. This strategy prioritizes expanding both affordable and social housing, incentivizing private sector participation, and reforming the rental market to formalize previously informal sectors. Subsidies are planned for low-income households, and special initiatives will address vulnerable populations, especially internally displaced persons and people with disabilities. Flagship government programs like eVidnovlennya (for housing recovery) and eOselya (preferential mortgage support) are slated for further expansion, focusing on displaced households. The government is also promoting energy-efficient construction and renovations, collaborating with international partners and financial institutions to support these reforms. Regional strategies will align with national objectives, aiming for balanced, inclusive, and sustainable housing development in Ukraine.

Housing cooperatives in Ukraine play a relatively modest but gradually expanding role within the national housing system. They account for less than 5% of the housing stock and are mainly present in urban areas, with around 1,000 cooperatives currently operating. Their main function is to pool resources for the construction or acquisition of multi-apartment buildings, offering more affordable options compared to private market prices. However, the cooperative sector remains limited compared to both private ownership and informal rentals. The legal framework for housing cooperatives is defined by the Law “On Cooperation” and accompanying statutes, but has not seen significant modernization in recent years. Cooperatives can benefit from certain tax incentives and, in some municipalities, priority access to land for construction. However, direct government support specifically targeting cooperative housing is limited. Most state activities and incentives, such as preferential mortgage programs and affordable housing funds, are aimed more broadly at affordability and housing recovery, especially for displaced or vulnerable populations. Recent policy reforms, including the 2025 Law “On the Basic Housing Policy Framework,” focus on overhauling the entire housing sector, with new attention to digitalization and transparency. While this could indirectly benefit cooperative models, the main thrust is toward expanding affordable and social rental housing, formalizing the rental sector, and supporting private ownership. Overall, the cooperative housing model in Ukraine faces bureaucratic and financial hurdles but is gaining attention as part of broader efforts to diversify affordable housing solutions.

Recent figures show that 79% of Ukrainians live in housing they or their household own, while 14% rent from private individuals. A further 2% live in state, municipal, or employer-provided housing without paying rent, and 2% in similar arrangements with payment, indicating a total of about 4% tied to public or employer-owned housing. The private rental market is informal but growing, while public and social housing remain limited. Housing prices have risen sharply: the median selling price for an apartment is about ₴2.3 million, or roughly €54,100 (based on ₴2.3M ≈ $55,200 and €1 ≈ $1.08 as of June 2025). The median price per square meter to buy varies by region, but for urban centers like Kyiv, recent trends suggest prices between €1,200–€2,000 per sqm, while broader national averages are lower. Renting apartments costs significantly less, with typical rents in Kyiv ranging from €200–€500 per month for a two-room apartment (about 50–60 sqm), translating roughly to €4–€8 per sqm per month, though national median rents per sqm are not officially consolidated. Publicly owned housing includes state, municipal, department, and employer-provided homes, but these make up a small share (about 4% total). Public housing is not necessarily the same as social housing, which is specifically designated for vulnerable groups and allocated based on need, while broader public housing may be used by civil servants, students, or other groups as determined by local policies. Social housing in Ukraine is under reform, aiming to become more transparent and inclusive, but currently has limited reach.